This is Later with Lee Matthews The Lee Matthews Podcast More what You Hear weekday
afternoons on the Drive. Jordan Belfour is a consultant for more than fifty public
companies and has written about it virtually every major newspaper and magazine, including The
New York Times, Wall Street Journal, Los Angeles Times. His best selling
novel, The Wolf of Wall Street, inspired the Oscar winning film of the
same name. Jordan Belfort's new book is The Wolf of Investing, my insider's
playbook for making a fortune on Wall Street. But let's get back to The
Wolf of Wall Street inspiring the movie. Jordan, You mean there weren't piles
of cocaine on every desk and blue chip hookers walking through the halls. Yeah,
there was was Welcome to the to the eighties on Wall Street, a
different time and place before before you on smartphones and everything was photographed. Yet
yeah, the fact that you did stuff and like there're stone at a camera.
They try to tigu you. They were holding a huge videocademy, Like
what's that camera for now? It's like everyone's very difficult, you know.
Well, in The Wolf of Investing, you pull back the curtain of what
you've coined the Wall Street theme machine complex. How do you mean? So
here's the thing. Wall Street is a funny place because it is it's like
a two headed monster. On one side of one head, wall Street does
incredibly important work and gives massive value to the US economy. And without Wall
Street we'd be really screwed. We would not have the economy we have,
the lifestyle we have, the statement of living you have, just would because
Wall Street provides financing and investment in the capital markets and the credit market.
So Wall Street is absolutely mission critical for that. But then the other side
they raped and pillage the village and create bubbles and rip people's eyeballs out and
convinced them to be engaged in things like short term trading and trying to time
the market. And that's the terrible side of Wall Street. So the book,
the strategy I talk about in the book is very simple. It allows
you to extract to maximize. It says your ability to get all that value
that Wall Street creates, but not get caught up in the corrupt casino.
So like that, which is really what short term trading on Wall Street is.
It's a corrupt casino. So because not only is the casino or any
casino, it's stacked against the player. Right, So in any casino,
do odds are against you slightly five percent, six percent depending on the game.
But imagine the only casino where the dice are also loaded against you,
so to double where me? But that's Wall Street? So how the question
is how do you take advantage of all the value that Wall Street creates?
Because if you create value without having to play in the corrupt casino, there's
a solution to that, and that's what I give to the of the reader
in the book. So it's a very simple way that you can participate and
get all the massive value in that Wall Street creates and build a portfolio like
that that's a long term portfolio and others. You're not trading in and out,
you're holding the right stocks and it's all done for it. It's it's
so simple to do and believe it or not when you follow this strategy.
This is a proven strategy. So it's again it's not like I invented it.
I'm just explaining it in the way and hopefully it's very accessible that people
will understand because you know, it seems I think one of the promises will
have is that you say, Okay, I only have ten thousand dollars to
invest. I'm just picking number right on some smaller amount of money. How
am I going to get rich with ten thousand dollars Because there's not enough and
I have to find the next Apple computer to get rich on that, right,
I can't just you know, but that's not true because when you invest
properly over the long term, something called long term compounding comes into play.
So if you reinvest your dividends and start adding to the positions a little bit
of money, give me fifty to one hundred dollars a month, over time,
you have millions of dollars waiting for you when you're ready to retire.
That's the secret. And so I go through this very simple strategy of how
you set up the right accounts, which funds, and you're going to be
buying index funds, not individual stocks. Now, if you want to speculate,
that's different. You can put aside five percent of your capital and have
fun and speculate, but don't expect to make money on that. Expect to
have fun and maybe to get lucky. You'll make money. But if you
follow the advice in the book, which is basically having a few key positions
that you're holding for the long term, reinvesting your dividends, and just having
patience. Again, nothing in life is guaranteed, but this is as close
as you can get on Wall Street with one hundred and fifty years of history
and academic studies on your side that says if you do this, you're going
to end up retiring rich. That's basically what the book goes through. The
Wolf of Investing my Insider's playbook from Making a Fortune on Wall Street. Jordan
Belford is the author. You know him as the Wolf of Wall Street.
Jordan, I'm so happy to hear you say what you just said, because
lovely wife is my financial investor. She's my financial consultant. She's got a
degree in finance and a degree in nursing, so I say she's a financial
nurse. But she has just recent we started to dabble in what you just
described, investing a little amount and some dividend stocks that we know are good
and secure energy stocks, and she's rolled those dividends back in and UH is
going to build from there. Yeah, and that's that's the secret. I
think. I go One step further is to tell your wife if she's not
listening right now, is that you know she doesn't even have to pick the
right stocks. That that's where we that's when we get into trouble. Human
beings is a really opting it's it's just it's a great truth that human beings,
by our very dna with awful stock pickers, we just take to pick
the wrong stocks. We try to pick stocks and time the market, we
end up usually shooting ourselves in the foot more often than not. There's a
way around that. There's a way around trying to pick stock. That is
to go and buy the index, the actual all of the stocks and that
that are being managed by by essentially a company called S and P standard p
was and never a committee that picks five hundred biggest stops and they keep changing.
So every three months if a company's not doing as well, or it's
spoiling out of favor, or let's say there a certain sector is becoming less
important in the economy, they adjust these the weighting of these five hundred stocks.
So if you own this index and you can just buy it, you
know one of the time you ENTI buy the index from certain companies that fell
it with no fees attached. Right. And if you do that, you're
going to always especially be in the right because other big funds have to chase
me, and if they're rebuying it, they'll buy the fault but a self
fulfilling prophecy. So all you have to do is put it in the right
type of account. You want to put it in as many packs three accounts
as possible. Right, it's your Ira roy diarrhea for a one k,
right, and then the rest would just turn a regular account. But have
the discipline you set to reinvest the dividends and a little bit of money as
much as you can each month to the position. And you'll be shocked that
even a small amount of money turns into millions of dollars over a long period
of time. That's the secret, and he gives you the secret and the
wolf of investing, and Jordan Belford is with us. One of the things
you pose is to not have a professional, earn an expert to manage your
money for you. You can do better by yourself except your wife, right,
right, But he hesitates, yes, And I'll tell you why a
right, And this is this is the trap because we've been conditioned, and
rightfully so, to seek out experts to help us get the best results possible
for certain things in your life. For example, you know, if you're
really sick and you need to get surgery, it's your pennis is about the
first. You'd be far better off finding a doctor, a surgeon to do
the surgery than trying to do it yourself. If the pipe's in your house
burst and the water's leaping all over, you're going to get a much better
result by going out and hiring a licensed plumber of expert to fix your pipe.
Safe thing goes. If you have a short circuit your house, don't
try to fix it yourself. Go fire like you canna do much better there
too, right. However, the one exception to this is hiring an expert
to manage your money to get you a better results. They will not.
It's almost guaranteed they will. It's almost never happens that the expert beats just
simply the novice who just buys the indexes, because after they dec their fees,
their commissions, and they then of course they not not just these and
commissions, but also if you get sewing your money to manage, right,
imagine if they just take the money and they put it into an index fund
that does no trading, You'll say, well, why am I paying you
a fee if you're not doing any trading. So it's almost they're forced to
clean activity to justify their existence. So even though it's fought less efficient to
trade in and out and it's less tax atition as well, they're forced to
because they need to have justify in their own existence. So you're set up
with experts are engaging in more short term strategies. They are unable to beat
the market because the market is very efficient, so you end up with a
worse result by hiring an expert and simply doing yourself. Put your money into
the right type of fund okay, that has no fees with an expense,
really no management fee. There's nothing mad as it's happened. You have virtually
no expenses because the fund is designed to have no expenses, and you're just
having patient that you are just actively adding a little bit of money. That's
all what you need to do. Then, of course there's a couple of
other investments you want to have in there to balance out the ups and downs,
because again you'll have some years where it might go down, but over
the long term, it always goes up over the long term. And that's
the secret. So you do not need someone to sit there and tell you
what to buy, when to buy it. It's going to get you a
far worse result than following the advice. I'll give you the book and every
app academic study, every study by you know, they go back to what
I think eighteen eighty. Every study says this is the way to do it,
and he tells you all about the way to do it. Jordan bell
Fort, New York Times best selling author of The Wolf of Wall Street,
The Wolf of Investing, My inside utters playbook for making a fortune on Wall
Street. It's worth a read, and I thank you for joining us.
Thank you very much. Thanks for listening to Later with Lee Matthews, the
Lee Matthews Podcast, and remember to listen to The Drive Live weekday afternoons from
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